The UK's Banking Regulator Sets Out Its Supervisory Expectations

In Supervisory Statement SS31/15, the UK's Prudential Regulation Authority ("PRA") updates banks and the large investment firms it supervises on its expectations for their Internal Capital Adequacy Assessment Process ("ICAAP") and Supervisory Review and Evaluation Process ("SREP"). SS31/15 provides further detail underpinning the high-level PRA expectations set out in its "approach to banking supervision" in the following areas, effective from 1 July 2026:

1. Expectations of firms undertaking an ICAAP

• Firms are reminded that ICAAP assessments are an ongoing obligation that involve more than just the PRA's own methodologies because they must reflect the level and nature of the bank's own risk exposure. ICAAPs are the responsibility of a firm's management body and an integral part of the management process and decision making, necessitating robust and demonstrable systems, controls and information flow.